Tuesday, 27 May 2014

Questions (315)

Patrick O'Donovan

Question:

315. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform his plans in relation to the public service pension reduction; if he will consider either abolishing or reducing the bands of this income graduated reduction; and if he will make a statement on the matter. [22747/14]

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Written answers (Question to Public)

The Public Service Pension Reduction (PSPR) was introduced in 2011 under the Financial Emergency Measures in the Public Interest Act 2010. It generates an estimated saving of some €125 million annually for the public finances, based on the estimated full-year position following the PSPR rate adjustments of 1 July 2013, which were legislated for by way of the Financial Emergency Measures in the Public Interest Act 2013.

The PSPR forms part of the wider set of emergency fiscal measures introduced under the Financial Emergency Measures in the Public Interest Acts 2009-2013. Under section 12 of the Financial Emergency Measures in the Public Interest Act 2013, I must review these emergency measures, including the PSPR, on an annual basis and cause a written report of my findings to be laid before each House of the Oireachtas. As part of that review I am required to consider whether the measures continue to be necessary having regard to the purposes of the legislation, the revenues of the State and State commitments in respect of public service pay and pensions. My next such report will be laid before the Houses of the Oireachtas by 30 June 2014.